Why is it always a good idea to invest in real estate?

The global market is an unstable investment when compared to the stability of investing in real estate. Despite the ebb and flow of the market, real estate is always a good place to put your money. There are various factors that justify this statement.

1.     It is a time of discounts and great offers in real estate and home loans as well! It is the time to invest, especially since it is currently a buyer’s market.

2.     The stability of the real estate market has been long established. Both the share and equity market fluctuate many times within a day and can wipe out your life savings in an hour. The prices in the real estate market change slowly and over a period of time. Even if the value decreases, it is over a long period of time, which makes it a better investment overall in the long run.

3.     The development in Pune and the plans to build a metro automatically make the real estate market more lucrative. While the city is still developing and growing, it is the perfect time to invest.

4.     In Pune specifically, there is always demand for homes on rent. Investing in a second property is sure to reap rich rewards because of the influx of students and IT professionals.

5.     The home loan interest rates have gone down and continue to get better. With options like EMI in home loans, getting that dream home is that much easier.

6.     Unlike other markets, the real estate market moves in a cycle. It is far more predictable without requiring the amount of attention that the stock market requires. An investment in the real estate market, no matter where in the cycle it is at then, will bring good returns in the long run.

7.     The real estate market has a tangible, physical aspect that is not possible with most other markets. One can live in it or rent it out, but it can be touched. It has a physical presence.

Tips for an Eco-friendly Diwali

The festival of lights is around the corner. Every year, the celebration of this festival is done without thinking of the negative effects on the environment and animals. From the pollution from crackers to the overuse of plastic, there are various practices that cause adverse harm to the environment. It is important that we remember while celebrating the festival to think of the environment and protect it by various small practices and differences in what we usually do.

1.     Stick to simple earthen oil diyas with no lead based paint on them. Avoid candles as they waste a lot of energy and affect air quality.

2.     Switch off electric lights whenever possible to save energy.

3.     Make your rangolis with natural products such as rice flour, turmeric, coffee powder, kumkum, flowers and eco-friendly colours.

4.     Re-use cardboard boxes and bags instead of buying more of the same and causing more litter.

5.     Buy eco-friendly gifts such as bags made of jute, clothes made of natural products, etc.

6.     Avoid using (plastic) wrapping paper and use newspaper and other such materials that are eco-friendly.

7.     Avoid bursting crackers to prevent air and noise pollution. The pollution causes asthma, headaches and other such health problems. Animals in the vicinity are also traumatized by the sound and affected by the air pollution. 

Why is Infrastructure important while investing?

When it comes to real estate, there are many factors that should be taken into consideration. The most important being infrastructure.  It can make or break a deal, a company and the value of an area. It is known as a major market driver in the field of real estate since it can be the difference between a yes and a no. Good infrastructure can cause property value to rise through the roofs.

The term ‘infrastructure’ stretches to various aspects of development. From well made roads to schools and markets, it is important to be sure of the area completely before investing. The above mentioned factors in particular can reduce time spent on travel and are thus very important while choosing an area to invest in.

While it is important that infrastructure exists, it is more important that this infrastructure is built along with other development in an even manner. Infrastructure developing around and after real estate causes a haphazard structure with no real organization. Infrastructure should be the first thought, not an afterthought. It should be the first priority, not a suddenly remembered, rushed activity.

While investing, remember the value of infrastructure. The pricing of an area is dependent on infrastructure. So, if an area seems to be priced surprisingly low, take a hard look at the infrastructure. It will serve you well in the long run.  That being said, if your investment is in a second home or for long term appreciation purposes, it makes sense to invest in an area that is still developing. But when investing for yourself or for rental purposes, be sure to look at the infrastructure with a fine toothcomb. 

All you need to know about Home Loans and Joint Responsibility

A joint loan can be both a blessing and a curse. While it gives you the security of another trusted person in it with you, it also presents the risk of the other person's financial situations and problems that you might not know about. Before entering into any sort of agreement, the loan should be discussed and understood by both sides, responsibilites should be allotted and the seriousness of a joint loan should be given proper consideration.

With most people, the need for a home loan arises because their income is not sufficient for an individual loan. In which case, they take the help of a family member usually or a trusted friend. The person usually has a better credit history and more collaterals to get the joint loan.

There are various terms to be understood when it comes to joint home loans:
1. Primary borrower: The main applicant for the loan.
2. Co-owner: holds the legal share of the property. Minors cannot be co-owners in India.
3. Co-applicant: also known as the joint applicant, he/she applies for the loan's sanction along with the primary borrower to supplement his/her income.They help in increasing eligibility.
4. Co-borrower: shares the responsibility of the loan with the primary borrower. He/she will have to pay back the loan in case of death or inability of the primary borrower to pay his/her share. Though, it is the main responsibility of the primary borrower to repay the loan, the co-borrower is equally responsible. In case of divorce or parting of ways, the joint loan can be split into individual loans with adequate permission from the bank.

What to avoid while Decorating

All of us have our idea of the perfect home. The perfect colours, the perfect  furniture and the perfect interiors. It is important while planning your home to remember what to avoid doing.

1. Do not buy furnishings before deciding on the colour of your house. Only start with the interiors after the painting has been complete because the colour in a catalog and the actual colour might have a slight difference in shade. Avoid a disaster by waiting.

2. If you have already got furniture that does not match, invest in cushion covers to keep the aesthetic.

3. Under all circumstances, avoid clutter. If you are not a fan of the minimalistic way of decorating, make sure all your knick knacks are very well arranged and looked after.

4. Instead of putting too many photo frames on your mantel or cupboard, make a gallery wall. It looks more organized.
Do not leave unused cable lying around. You can fix tubing to hide cables while in use.

5.Decorate your rooms with the same theme. Avoid mixing and matching themes that do not go well together.

6.Avoid making rooms too formal. The goal is to be warm and inviting, yet classy and stylish.

7. Do not decorate bedrooms in the same colour throughout. Mix and match to create the perfect combinations.

8. Avoid furniture that is too large or too many pieces of furniture. You don’t want your house to look over crowded. Instead, find the right size and the right number.

9. Be careful with the patterns you get while furnishing. Too many patterns are an eyesore. 

NRI investing in India? Here’s how it works

To begin with, let’s list the people who can invest in India, aside from the obvious of resident Indians. NRIs (Non-Resident Indians) and their spouses as well as PIOs (Persons of Indian Origin) are allowed to possess both residential and commercial property on Indian soil. OCBs (Overseas Corporate Bodies) and trusts which have more than 50% NRI ownership/stake are also allowed to invest in Indian real estate. At the same time, foreigners or foreign owned organizations have certain processes and permissions to obtain from the Reserve Bank of India to obtain property in the country. In their case, leasing is a better option.

It is important to remember that while investing as an NRI or OCB, the property should be rented out or occupied immediately! You cannot invest in real estate and leave it empty. While you are allowed to invest in all types of residential and commercial property from townships and industrial factories to apartment complexes and showrooms, an NRI or OCB cannot invest or own agricultural land in India.

However, there are rules that the RBI imposes on income made from property owned by NRIs. All income generated from rentals is to be deposited in an NRO (Ordinary Non-Resident Rupees) account. At the same time, shares and debentures can be returned after a time period of three years.

Is a Pre-approved Home Loan What You Need?

The most important factor that comes into play while investing is the financial aspect. This is even more so for first time buyers. Getting your home loan pre-approved makes the process faster and easier. It lets you make your decision without having to worry about financing. It makes it easier for you to pick a home and make a deal with your pre-approved home loan. The whole affair is less worrisome and it makes things just a little easier. When it comes to the process of getting a home loan, any little factor that makes your life easier should be grabbed with both hands.

When a buyer applies for pre-approval of a home loan, the housing finance company/bank/developer will go through various stats, readings and general information of the applicant. After getting your CIBIL TransUnion number and confirming that your credit and financial health is good, then you will be given a certificate of pre-approval. This certificate is more useful than you realize. It gives you an accurate estimate of your budget. This estimation makes it easy for you to pick a developer and a home.

This letter is a statement from a financial institution that you are capable of providing financial backing for your promises. It gives you backing and is a certificate proving that you are financially capable of finishing the deal. With this letter, your journey to purchasing the house of your dreams is that much easier.